LyrArc Article Gist
Charley Grant of WSJ warns that Tesla is in for a difficult time ahead as it ramps up its production of Model 3 cars. He says overhead costs should lead to negative margins during the early rollout stage, and only when the production ramps up could this turn positive. Tesla needs $2 billion in the second half of 2017, and is now turning to debt markets for its capital needs. 

LyrArc Article Gist
Toyota ended its relationship with Tesla to focus on fuel cell technologies. Panasonic is taking up electric car batteries project in stages to limit risk. As Tesla focusses on a car for the mass market at $35,000, both the upside and the downside are evident, as shown in this report by Pulliam, Ramsey and Mullins of the WSJ. The reporters say the arrrangement of interconnected companies Solar City, Tesla, and SPace X through Musk's holdings and his personal loans to companies in difficulty such as Solar City- using his Tesla shares as collateral- is a risky business. This follows the way Valeant shares lost 14% in one day, as market perception changed. Venture capital companies such as Jurvetson with which Tesla has connections, and relatives, round up the ownership of these companies in a tightly knit arrangement with Musk as the key shareholder in an unconventional arrangement, says WSJ.